Overview
- Pre-tax profit rose to £350.4m for 2025, up 20.7% as income increased and costs fell.
- Net interest margin improved to 2.89%, supported by gains from the bank’s structural hedge in a higher-rate environment.
- Operating expenses declined 4.4% to £786m after simplification efforts and technology upgrades.
- Loans to customers edged down 0.2% to £36.3bn as TSB reported cautious UK consumers and a challenging lending market.
- Sabadell agreed to sell TSB to Santander for about £2.6bn, potentially rising to £2.9bn, with completion expected in the first half of 2026 subject to regulators; CEO Marc Armengol will move to Sabadell and remain at TSB until close as questions persist over the brand, branches and jobs.